The US Dollar began the week in Asia doing something a bit unique as of late, it moved higher. The start of the trade week saw both the greenback and yen start to claw out of last weeks hole as profit takers looked to capitalize on what they believed were overbought markets. Further moves higher in the dollar and yen were also attributed to deteriorating trade relations between China and the US. The issue began with US President Obama imposing a new 35% duty on imported Chinese tires, and China responded by accusing the US of “a grave act of protectionism” and stating that it would reevaluate import taxes on US poultry and automobiles. Fears that the disagreement could escalate pushed traders toward perceived safety of yen and dollars. This spat could make for interesting conversations at the upcoming G-20 meeting due to be hosted by President Obama in Pittsburgh within a few weeks. Full text »
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